A Christchurch industrial precinct that already moves much of the South Island’s food and building supplies is set for a $500m-plus expansion, plugging into a new $5.5 billion regional network built to connect Canterbury exporters with ports and the country’s largest planned inland port.
More than $500 million will be invested over the next five years to expand the South Island’s food, manufacturing and construction supply chain infrastructure — a move set to strengthen the region’s role as an export and distribution gateway.
The investment centres on a new 30-hectare fourth stage of Christchurch’s Hornby Quadrant, one of the largest industrial business parks in New Zealand. The precinct is being integrated into a new $5.5 billion, 860-hectare regional manufacturing and export logistics network designed to connect Canterbury with the country’s largest planned inland port and largest industrial development, both earmarked for Otago and Southland.
For exporters and importers, the appeal is connectivity. Hornby Quadrant sits close to the port, airport and major motorways — the links that matter most for businesses moving goods in and out of the South Island.
“Given its proximity to the port, airport, and major motorways, the development has attracted strong interest from both local and international firms,” says Sam Stewart, Director of national property and construction firm Calder Stewart, which owns and is developing the land.
“We are in discussions with key international freight and distribution companies interested in establishing or expanding their South Island presence. Most of these businesses are household names, and having an operational presence in Christchurch is crucial for their wider business strategy.”
The fourth stage will see Calder Stewart support operators including Mainland Group — formerly part of Fonterra’s consumer brands business — United Steel and other large-scale firms in establishing manufacturing and distribution facilities. It will carry a completed value of more than half a billion dollars, taking the entire precinct beyond $3 billion once finished.
Even half-built, the 150-hectare-plus precinct already acts as a distribution hub for a significant share of the South Island’s consumer food products and building materials. Existing tenants include Foodstuffs South Island’s distribution centre, six Fletcher Building subsidiaries, Sleepyhead, Penske, OJI Fibre Solutions, My Food Bag and Dairyworks, which distributes around 80 percent of New Zealand’s cheese through its chilled warehouse.
The expansion comes as Christchurch confronts a commercial land shortage that has seen prices double to almost $500 per square metre over five years. Calder Stewart says Hornby Quadrant is the last remaining area in the city where facilities of 40,000sqm-plus can be designed for occupiers — a constraint that could push businesses to look outside Christchurch to consolidate their distribution centres.
“Christchurch is facing a land supply constraint similar to Auckland,” says Ben Stewart, Calder Stewart’s Director of Property.
“While we have the ability to expand westward, much of the available land is not zoned or serviced, limiting options for businesses needing large industrial footprints.”
Ben Stewart.
He says advances in automated search-and-retrieval warehousing are driving operators to consolidate into larger, more advanced facilities to cut overheads and lift supply chain efficiency — making large, well-located sites increasingly valuable. Zoning certainty and infrastructure investment, he adds, are crucial to keeping Christchurch competitive for logistics, manufacturing and distribution businesses.
With about 80 hectares of land remaining, Calder Stewart expects Hornby Quadrant to be fully developed within a decade, eventually employing thousands and with the potential to generate 70MW of renewable energy via rooftop solar — enough to power 9,350 homes.
